The Financial Services Authority (FSA) has banned stockbroker Graham Betton
from working in financial services, following his role in a scheme that set
out to ramp up the share price of Fundamental-E Investments (FEI), an
audiovisual technologies company.

Betton was director of agency-only stockbroker SP Bell, along with Simon Eagle, who himself was banned and fined £2.8m by the FSA in May this yearPhoto: Peter Payne

Betton was director of agency-only stockbroker SP Bell, along with Simon Eagle, who himself was banned and fined £2.8m by the FSA in May this year.

In 2003 Eagle bought 85pc of FEI and acquired SP Bell in order to sell FEI stock to its clients, generating demand for the stock and pushing its price up.

Betton then instructed SP Bell staff to sell FEI shares to clients, many of whom were unaware that the shares were being bought and sold on their behalf.

The Upper Tribunal (Tax and Chancery Chamber), the independent judicial body, said on Monday that it was considering the fine that it deems appropriate for Betton's actions and will announce this at a later date.

It concluded that it would "be wrong, damaging to market confidence and, indeed, unthinkable if Betton were allowed to continue operating in the financial services sector".

Margaret Cole, managing director of enforcement and financial crime at the FSA, said: "This marks the final chapter of a scheme which saw the share price of FEII deliberately manipulated to the detriment of ordinary investors. Betton was an experienced director of an FSA-authorised firm."